The market’s so-called fear gauge sank Friday, dropping below 13 for the first time in more than 5 1/2 years, as investor worries about market swings appeared to fade.

The Chicago Board Options Exchange’s Volatility Index dropped as low as 12.29 Friday–the lowest intraday level since May 22, 2007, as the gauge extended a streak of trading below 14 to an eleventh-straight session–the longest such streak since an 18-day run ending April 27.

“The VIX absolutely imploded,” said Mark Sebastian, chief operating officer at consulting firm OptionPit, citing headlines that suggested a confrontation over U.S. borrowing limits might be avoided. “With debt-ceiling fears pushed off and no major news expected over the next month, I wouldn’t be surprised to see the VIX keep falling and threaten 2006 lows.”

The VIX–calculated from the prices investors are willing to pay for options tied to the S&P 500—finished down 1.11 points, or 8.2%, at 12.46, notching the lowest finish since April 27, 2007. The VIX has plunged 45% over the past three weeks, after the index peaked at 22.72 amid concerns about whether the government would be able to reach a budget and tax deal before the end of last year.